Core Insights - Jones Lang LaSalle Incorporated (JLL) reported fourth-quarter 2024 adjusted earnings per share (EPS) of $6.15, exceeding the Zacks Consensus Estimate of $5.80 and up from $5.36 in the prior-year quarter [1][2] - The company achieved revenues of $6.81 billion, surpassing the Zacks Consensus Estimate of $6.48 billion, reflecting a 15.8% increase year-over-year [2] Financial Performance - For the full year 2024, JLL's adjusted EPS was $14.01, higher than the previous year's $10.39 and above the Zacks Consensus Estimate of $13.64 [3] - Total revenues for 2024 reached $23.43 billion, a 12.9% increase from the prior year, also exceeding the Zacks Consensus Estimate of $23.11 billion [3] Segment Performance - The Markets Advisory segment generated revenues of $1.33 billion, a 10.9% year-over-year increase, driven by leasing activities, particularly in the office sector across the U.S., India, and Greater China [4] - Property Management revenues grew due to expansion in the U.S. and Asia Pacific, attributed to higher pass-through costs, while management fees remained flat [5] - Capital Markets segment revenues were $706.4 million, up 31.5% year-over-year, led by Investment Sales and Debt/Equity Advisory, particularly in the U.S. and Asia Pacific [6] - Work Dynamics segment reported revenues of $4.56 billion, a 14.9% increase year-over-year, driven by strong performance in Workplace Management and Project Management [7] - LaSalle segment revenues increased by 39.3% year-over-year to $160.6 million, primarily due to higher incentive fees in Asia Pacific, despite a decline in advisory fees in Europe [8] - JLL Technologies segment revenues declined by 9.5% year-over-year to $59.3 million, attributed to lower contract signings in technology solutions [9] Balance Sheet - As of December 31, 2024, JLL had cash and cash equivalents of $416.3 million, down from $437.8 million at the end of the third quarter [11] - The net leverage ratio improved to 0.7 from 1.7 as of September 30, 2024, while corporate liquidity increased to $3.62 billion from $3.39 billion [11]

Financial Performance - Total revenue for the year ended December 31, 2024, was $23,432.9 million, representing a 13% increase from $20,760.8 million in 2023[352]. - Operating income increased by 51% to $868.1 million in 2024, compared to $576.5 million in 2023[352]. - Net income attributable to common shareholders was $546.8 million, or $11.30 per diluted share, compared to $225.4 million, or $4.67 per diluted share in 2023[381]. - Adjusted EBITDA for 2024 was $1,186.3 million, a 26% increase from $938.4 million in 2023[366]. - The company’s comprehensive income attributable to common shareholders was $491.4 million in 2024, up from $282.1 million in 2023, reflecting a growth of 74.3%[459]. - Basic earnings per common share improved to $11.51 in 2024, up from $4.73 in 2023, indicating a growth of 143.5%[459]. - Cash flows from operating activities improved to $785.3 million in 2024, up from $575.8 million in 2023[407]. Revenue Breakdown - Revenue from the United States dollar accounted for 61.5% of total revenue in 2024, up from 59.0% in 2023[347]. - The company reported a 15% increase in Work Dynamics revenue, reaching $16,197.6 million in 2024, compared to $14,131.1 million in 2023[352]. - Workplace Management revenue grew by 17% to $12,529.7 million, contributing to the overall revenue increase in the Work Dynamics segment[392]. - Capital Markets revenue increased by 15% to $2,040.4 million, driven by strong investor sentiment and activity in Investment Sales[389]. - Transactional revenue grew by 11%, with Leasing and Investment Sales showing strong performance, up 11% and 20% respectively[371][389]. Expenses and Liabilities - Total operating expenses increased by 12% to $22,564.8 million in 2024, up from $20,184.3 million in 2023[352]. - The provision for income taxes was $132.5 million, resulting in an effective tax rate of 19.5% for 2024[380]. - Total liabilities rose to $9,868.7 million in 2024, up from $9,654.9 million in 2023[457]. - Total operating expenses for 2024 were $22,564.8 million, an increase of 11.8% from $20,184.3 million in 2023[459]. Investments and Assets - The company invested in proptech funds and early to mid-stage companies to enhance its strategic position in the real estate technology landscape[316]. - Total assets increased to $16,763.8 million as of December 31, 2024, compared to $16,064.8 million in 2023[457]. - JLL Technologies had a carrying value of $812.7 million in investments as of December 31, 2024, primarily in early to mid-stage proptech companies[417]. - The company utilized $316.8 million for investing activities in 2024, an increase from $290.4 million in 2023, due to higher business acquisition volumes[408]. Tax and Goodwill - The company’s global effective tax rate is sensitive to changes in geographic profitability and is evaluated quarterly[322]. - The company evaluates goodwill for impairment at least annually, with the largest asset on the balance sheet being goodwill[310]. Market and Economic Influences - The company’s results are significantly influenced by macroeconomic trends, geopolitical environment, and global real estate markets[330]. - If interest rates were to increase by 50 basis points during 2024, the company's interest expense would rise by $6.9 million[341]. Operational Insights - The company employs over 112,000 employees, with approximately 53,900 being reimbursed by clients[468]. - The company has operations in over 90 countries, contributing to its global tax structure complexity[444]. - The company maintained effective internal control over financial reporting as of December 31, 2024[449]. Revenue Recognition - The company’s revenue recognition involves complex judgments regarding performance obligations and timing, impacting transaction commissions and advisory fees[309]. - Revenue recognition for LaSalle's transaction fees and incentive fees is generally constrained until all contingencies have cleared[498]. - JLL's performance obligation in Capital Markets is generally satisfied at the point in time upon which the performance obligation is met, leading to immediate revenue recognition[484]. Equity and Shareholder Information - Equity losses from JLL Technologies and LaSalle decreased by 64% to $76.4 million in 2024, down from $201.7 million in 2023[366]. - Company shareholders' equity increased to $6,771.5 million in 2024, compared to $6,293.8 million in 2023[457].

14.88 Fourth Quarter 2024 February 19, 2025 Cautionary note regarding forward-looking statements Statements in this presentation regarding, among other things, future financial results and performance, achievements, plans, objectives and share repurchases may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors, the occurrence of which are outside JLL's control wh ...

Financial Data and Key Metrics Changes - Revenue in Q4 2024 grew double digits, with adjusted EBITDA increasing by 20% and adjusted EPS by 17% [10][11] - For the full year, adjusted EBITDA and adjusted EPS grew 28% and 38% respectively, significantly outpacing the 13% revenue growth [10][11] - Free cash flow generation improved, allowing for reinvestment in the business and capital return to shareholders [11] Business Line Data and Key Metrics Changes - Markets Advisory revenue growth was primarily driven by leasing, which saw double-digit growth across most geographies, particularly in the US, India, and Greater China [18] - Capital Markets experienced significant growth, with investment sales revenue increasing over 35% and global debt advisory revenue growing approximately 70% [23] - Work Dynamics revenue growth was led by new client wins and mandate expansion, with workplace management revenue growing nearly 30% on a two-year stack basis [25][26] Market Data and Key Metrics Changes - The US office leasing market is approximately 80% through the downsizing cycle, with 30% of leasing activity now representing new space requirements [73] - Industrial leasing is expected to stabilize in 2025, with demand remaining in line with pre-pandemic averages despite recent declines [77] Company Strategy and Development Direction - The company is focusing on enhancing operating efficiency and investing in technology, including AI capabilities through the JLL Partners platform [12][13] - Recent acquisitions aim to enhance technical capabilities and digital leasing platform capabilities [15] - The company plans to offset dilution from stock compensation through share repurchases while evaluating broader investment opportunities [16][80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued growth in leasing activity, supported by stable business confidence and a recovering real estate cycle [22][41] - The outlook for 2025 anticipates a gradual recovery in transactional business lines, with adjusted EBITDA targets set between $1.25 billion and $1.45 billion [39][38] Other Important Information - The company reported a strong balance sheet with liquidity of $3.6 billion and net leverage reduced to 0.7 times [36] - A realignment of business segments took effect on January 1, 2025, aimed at improving client experience and operational synergies [43][44] Q&A Session Summary Question: What are the assumptions for the high and low ends of the EBITDA guidance range? - Management highlighted typical seasonality and the impact of a strengthening dollar, with the midpoint anchored in a gradual recovery for transactional business lines [51][52] Question: What are the expectations for incremental margins in 2025? - Management noted that while there were one-off items affecting margins in 2024, they expect margins to normalize and improve in 2025 [56][58] Question: Can you provide more detail on AI solutions and their impact? - Management indicated that numerous AI products are being rolled out, with a focus on increasing productivity and aligning business processes [65][66] Question: What is the outlook for office leasing in 2025? - Management reported that office leasing is showing signs of recovery, with positive absorption in the US and expectations for continued growth [72][73] Question: How is the company balancing share repurchases and M&A? - Management stated that share repurchases will depend on business performance and market conditions, with a commitment to offset dilution from stock compensation [80][81] Question: What are the expectations for profitability in the JLL Technologies segment? - Management aims for the segment to achieve profitability by 2026 while balancing investments for growth [116]

Core Insights - Jones Lang LaSalle (JLL) reported a revenue of $6.81 billion for Q4 2024, marking a year-over-year increase of 15.8% and an EPS of $6.15 compared to $4.23 a year ago, exceeding the Zacks Consensus Estimate of $6.48 billion by 5.03% [1] - The company demonstrated an EPS surprise of 6.03%, with the consensus EPS estimate being $5.80 [1] Revenue Performance - Revenue from Capital Markets - Loan Servicing was $40 million, below the average estimate of $44.77 million, reflecting a year-over-year change of +5% [4] - Revenue from LaSalle - Transaction fees and other reached $9.10 million, surpassing the estimate of $8.43 million, with a year-over-year increase of +23% [4] - Capital Markets revenue was reported at $706.40 million, exceeding the average estimate of $654.43 million, representing a +31.5% year-over-year change [4] - JLL Technologies generated $59.30 million, below the average estimate of $63.16 million, indicating a year-over-year decline of -9.5% [4] - Revenue from Capital Markets - Value and Risk Advisory was $111 million, slightly below the average estimate of $119.12 million, with a +3.1% year-over-year change [4] - LaSalle revenue was $160.60 million, significantly above the average estimate of $103.52 million, reflecting a +39.3% year-over-year increase [4] - LaSalle - Advisory fees totaled $95.70 million, exceeding the average estimate of $91.24 million, with a +3.1% year-over-year change [4] - Revenue from Capital Markets - Investment Sales, Debt/Equity Advisory and Other was $547.70 million, surpassing the average estimate of $490.54 million, representing a +40% year-over-year change [4] - LaSalle - Incentive fees reached $55.80 million, significantly above the average estimate of $3.85 million, indicating a remarkable +580.5% year-over-year increase [4] - Markets Advisory - Advisory, Consulting and Other generated $37.10 million, slightly above the estimate of $36.88 million, with an +8.8% year-over-year change [4] - Markets Advisory - Leasing revenue was $814.40 million, close to the estimate of $817.36 million, reflecting a +13.5% year-over-year change [4] Stock Performance - Shares of Jones Lang LaSalle returned +4% over the past month, compared to the Zacks S&P 500 composite's +4.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - Jones Lang LaSalle (JLL) reported quarterly earnings of $6.15 per share, exceeding the Zacks Consensus Estimate of $5.80 per share, and up from $4.23 per share a year ago, representing an earnings surprise of 6.03% [1] - The company achieved revenues of $6.81 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.03%, compared to $5.88 billion in the same quarter last year [2] - JLL has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating strong financial performance [2] 分组2 - The stock has gained approximately 11.7% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The current consensus EPS estimate for the upcoming quarter is $2.07 on revenues of $5.51 billion, and for the current fiscal year, it is $16.42 on revenues of $25.1 billion [7] - The Real Estate - Operations industry, to which JLL belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, which may impact stock performance [8]

Revenue Growth - Fourth-quarter revenue reached $6.81 billion, a 16% increase year-over-year, with transactional revenues up 22% and resilient revenues up 13%[2] - For the full year, total revenue increased to $23.43 billion, reflecting a 13% growth compared to 2023[1] - Revenue for Q4 2024 was $1,328.0 million, an 11% increase from $1,197.4 million in Q4 2023, with full-year revenue reaching $4,500.7 million, up 9% from $4,121.6 million in 2023[20] - Capital Markets revenue surged to $706.4 million in Q4 2024, a 32% increase from $537.1 million in Q4 2023, with full-year revenue at $2,040.4 million, up 15% from $1,778.0 million[25] - Work Dynamics revenue for Q4 2024 was $4,556.6 million, a 15% increase from $3,966.1 million in Q4 2023, with full-year revenue at $16,197.6 million, also a 15% increase from $14,131.1 million[30] - JLL's total revenue for Q4 2024 was $6.81 billion, up from $5.88 billion in Q4 2023, with full-year revenue reaching $23.43 billion compared to $20.76 billion in 2023[46] - Revenue for the Markets Advisory segment increased to $1,328.0 million in Q4 2024, up 10.9% from $1,197.4 million in Q4 2023[49] - The Work Dynamics segment reported total revenue of $3,472.3 million for the three months ended December 31, 2024, compared to $3,018.5 million in the same period of 2023, an increase of 15.0%[98] Earnings and Profitability - Diluted earnings per share for Q4 were $4.97, up 39% from $3.57 in the prior year, while full-year diluted earnings per share rose to $11.30, a 142% increase[9] - Adjusted EBITDA for Q4 was $454.8 million, a 19% increase year-over-year, and for the full year, it reached $1.19 billion, up 26%[9] - Adjusted EBITDA for Q4 2024 was $170.8 million, a 6% increase from $160.5 million in Q4 2023, with full-year Adjusted EBITDA rising to $547.6 million, a 31% increase from $416.6 million in 2023[20] - Adjusted EBITDA for the Markets Advisory segment improved to $170.8 million in 2024, compared to $160.5 million in 2023[49] - Adjusted EBITDA for the Capital Markets segment surged to $119.9 million in Q4 2024, up 57.5% from $76.1 million in Q4 2023[52] - The LaSalle segment's operating income improved to $40.6 million in Q4 2024, up from $17.6 million in Q4 2023[59] - Net income for the year ended December 31, 2024, was $546.8 million, a significant increase from $226.2 million in 2023, representing a growth of 142.5%[61] Cash Flow and Liquidity - Cash flows from operating activities for 2024 totaled $785.3 million, a 36% increase from $575.8 million in 2023[14] - Free cash flow for the year was $599.8 million, reflecting a 54% increase compared to $388.9 million in 2023[14] - The company maintained corporate liquidity of $3,616.3 million as of December 31, 2024, up from $3,392.8 million on September 30, 2024, and $3,085.0 million on December 31, 2023[17] - The company reported net cash used in investing activities of $316.8 million in 2024, compared to $290.4 million in 2023, an increase of 9.1%[61] - The company’s net cash used in financing activities was $451.2 million in 2024, compared to $374.3 million in 2023, an increase of 20.5%[61] Debt and Leverage - Total Net Debt decreased to $800.6 million as of December 31, 2024, down from $1,597.3 million on September 30, 2024, and $1,150.3 million on December 31, 2023[17] - The Net Leverage Ratio improved to 0.7x as of December 31, 2024, compared to 1.4x on September 30, 2024, and 1.2x on December 31, 2023[17] - Total debt as of December 31, 2024, was $1,216.9 million, down from $1,560.3 million in 2023[94] Segment Performance - Capital Markets segment revenue grew by 32% in Q4, driven by strong performance in investment sales and debt advisory[3] - The Work Dynamics segment delivered its fourth consecutive quarter of double-digit growth, with a 15% increase in revenue for Q4[2] - JLL Technologies reported Q4 2024 revenue of $59.3 million, down 9% from $65.5 million in Q4 2023, with full-year revenue decreasing 8% to $226.3 million from $246.4 million[34] - LaSalle's Q4 2024 revenue increased by 39% to $160.6 million compared to $115.3 million in Q4 2023, while full-year revenue decreased by 3% to $467.9 million from $483.7 million[38] Expenses and Costs - JLL's compensation and benefits expenses for Q4 2024 were $3.13 billion, compared to $2.67 billion in Q4 2023, reflecting a significant increase in operational costs[46] - The company reported platform operating expenses of $2,135.9 million for the three months ended December 31, 2024, compared to $1,859.7 million for the same period in 2023, marking an increase of 14.8%[98] - Gross contract costs for the three months ended December 31, 2024, were $3,927.9 million, up from $3,383.9 million in the same period of 2023, indicating an increase of 16.1%[98] Taxation - The effective tax rate for 2024 was 19.5%, a slight decrease from 19.6% in the previous year[9] - The provision for income tax increased to $132.5 million in 2024 from $25.7 million in 2023, reflecting a more normal effective tax rate[19]

Core Insights - Jones Lang LaSalle Incorporated (JLL) reported strong financial performance for 2024, with significant revenue growth and earnings per share expansion driven by transactional activity and cost discipline [1][3][9] Financial Performance - For Q4 2024, JLL's revenue reached $6.81 billion, a 16% increase from Q4 2023, with transactional revenues up 22% and resilient revenues up 13% [9][41] - Full-year revenue for 2024 was $23.43 billion, reflecting a 13% increase compared to 2023 [41] - Diluted earnings per share for Q4 2024 were $4.97, up 39% from $3.57 in Q4 2023, while full-year diluted earnings per share were $11.30, a 142% increase from $4.67 in 2023 [1][10][41] Segment Performance - The Markets Advisory segment generated $1.33 billion in Q4 2024, an 11% increase year-over-year, with leasing revenue up 14% [17][42] - Capital Markets saw a 32% revenue growth in Q4 2024, driven by investment sales and debt advisory, with investment sales in the U.S. growing approximately 60% for the quarter [21][23] - Work Dynamics reported $4.56 billion in revenue for Q4 2024, a 15% increase, led by Workplace Management and Project Management [25][26] Cost Management and Cash Flow - JLL maintained cost discipline, with total operating expenses increasing by 15% in Q4 2024, which was lower than revenue growth, leading to improved margins [4][11] - Cash flows from operating activities for 2024 were $927.3 million, a 27% increase from the previous year, while free cash flow was $868.1 million, up 28% [12][13] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $454.8 million, a 19% increase from Q4 2023, with full-year adjusted EBITDA reaching $1.19 billion, a 26% increase [10][24] Debt and Liquidity - As of December 31, 2024, JLL's total net debt was $800.6 million, down from $1.15 billion a year earlier, reflecting improved cash flows [15] - The net leverage ratio improved to 0.7x, indicating stronger financial health [15] JLL Technologies and LaSalle Performance - JLL Technologies experienced a revenue decline of 9% in Q4 2024, attributed to lower contract signings in technology solutions [28][31] - LaSalle's revenue increased by 39% in Q4 2024, driven by higher incentive fees, although advisory fees decreased [32][33]

Core Viewpoint - Jones Lang LaSalle (JLL) is expected to report strong quarterly earnings with an EPS of $5.79, a 36.9% increase year-over-year, and revenues of $6.48 billion, reflecting a 10.2% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 1.1% lower in the last 30 days, indicating a reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts project 'Revenue- Capital Markets- Loan Servicing' to be $44.67 million, a 17.2% increase year-over-year [5]. - 'Revenue- LaSalle- Transaction fees and other' is expected to reach $8.42 million, indicating a 13.7% increase [5]. - 'Revenue- Capital Markets' is forecasted at $653.34 million, reflecting a 21.6% increase from the prior year [5]. - 'Revenue- JLL Technologies' is estimated at $63.04 million, suggesting a 3.8% decrease year-over-year [6]. - 'Revenue- Capital Markets- Value and Risk Advisory' is projected to be $118.91 million, a 10.4% increase [6]. - 'Revenue- LaSalle' is expected to be $103.31 million, indicating a 10.4% decrease [6]. - 'Revenue- LaSalle- Advisory fees' is estimated at $91.05 million, a 1.9% decrease [7]. - 'Revenue- Capital Markets- Investment Sales, Debt/Equity Advisory and Other' is projected at $489.76 million, a 25.2% increase [7]. - 'Revenue- LaSalle- Incentive fees' is expected to be $3.84 million, reflecting a significant 53.1% decrease [8]. - 'Revenue- Markets Advisory- Advisory, Consulting and Other' is projected at $36.79 million, a 7.9% increase [8]. - 'Revenue- Markets Advisory- Leasing' is expected to reach $815.22 million, indicating a 13.6% increase [8]. Adjusted EBITDA - The average prediction for 'Adjusted EBITDA- Markets Advisory' is $193.24 million, compared to $160.50 million reported in the same quarter last year [9]. Stock Performance - JLL shares have increased by 5.8% in the past month, outperforming the Zacks S&P 500 composite, which rose by 3.9% [9].

Wall Street expects a year-over-year increase in earnings on higher revenues when Jones Lang LaSalle (JLL) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 19, 2025, might help the stock move higher if these key numbers are bette ...